Exhibit 10.43


 


SETTLEMENT
AGREEMENT AND RELEASE


 


This Settlement Agreement and Release (hereinafter
referred to as the “Settlement Agreement”) is made and entered into by and
between PDS GAMING CORPORATION (hereinafter “PDS”) and TEKBILT, INC.
(hereinafter “TEKBILT”) as of the 24th day of February, 2004.


 


RECITALS


 


A.    As
of January 1, 2002, PDS and TEKBILT entered a “Distributor Agreement” pursuant
to which TEKBILT appointed PDS as the exclusive distributor of certain TEKBILT
Products to end users within the territory designated on Exhibit B to the
Distributor Agreement.


 


B.    As
of January 11, 2002, PDS and TEKBILT entered a Remarketing and Repurchase
Agreement (the “Remarketing Agreement”). The Distributor Agreement and the
Remarketing Agreement are referred to jointly herein as the “Parties’
Agreements.”


 


C.    Certain
disputes arose between PDS and TEKBILT (the “Parties”) which resulted in
proceedings being commenced before the American Arbitration Association,
currently pending as AAA Case No. 79 181 00105 S1R, the arbitration hearing of
which is scheduled to commence in Las Vegas, Nevada on February 24, 2004 (the
“Arbitration”).


 


D.    Effective
February 23, 2004, the parties reached a Settlement Agreement, the terms of
which are set forth herein.


 


NOW THEREFORE, in consideration of the
mutual promises herein contained and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound hereby, agree as follows:


 

















 


1.     No Admission
of Liability.  The
Parties understand and acknowledge that this Settlement Agreement constitutes a
compromise and settlement of disputed claims. 
No action taken by the Parties either previously or in connection with
this Settlement Agreement shall be deemed or construed to be an admission of
the truth or falsity of any claims heretofore made or an acknowledgement or
admission by any of the Parties of any fault or liability whatsoever to the
other party.


 


2.     Incorporation
of Recitals.  The Parties
agree that all of the recitals set forth above are true and correct and are
incorporated by reference as if set forth at length herein.


 


3.     Payment
from PDS Gaming Corporation to Tekbilt  PDS Gaming Corporation shall pay to Tekbilt a total sum in the
amount of $450,000 (the “Settlement Amount”) to be paid as follows:


 


(a)          $200,000 shall be paid
by check payable to “Tekbilt, Inc. and its counsel Robert H. Nemeroff, Esq.,”
to be delivered to Robert H. Nemeroff, Esq., counsel for Tekbilt, within five
business days after execution of this Agreement by both parties; and


 


(b)         $250,000 shall be paid by
check payable to “Tekbilt, Inc. and its counsel Robert H. Nemeroff, Esq.,” to
be delivered to Robert H. Nemeroff, Esq., counsel for Tekbilt, no later than
August 24, 2004.


 


4.      Release
by TEKBILT.  TEKBILT
makes this release on behalf of itself, its past, present and future parent and
subsidiary organizations, businesses, corporations, divisions, affiliates,
partners, joint venturers, stockholders, insurers, assigns, officers,
directors, trustees, agents, attorneys, employees, predecessors, successors,
representatives, heirs and any other person, entity, firm or corporation with
whom they now or hereafter may be affiliated, and


 


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each of them and all persons, entities, firms or corporations who now
or hereafter may become entitled to assert a claim derived from TEKBILT
(hereinafter collectively referred to as the “TEKBILT Releasors”) against the
PDS Releasees as defined herein.  The
TEKBILT Releasors do hereby specifically, knowingly and voluntarily forever
RELEASE AND DISCHARGE AND COVENANT NOT TO SUE PDS, and each of its respective
past, present and future parent and subsidiary organizations, businesses,
corporations, divisions, affiliates, partners, joint venturers, stockholders,
insurers, assigns, officers, directors, trustees, agents, attorneys, employees,
predecessors, successors, representatives, heirs, and any other person, entity,
firm or corporation with whom it is now or hereafter may be affiliated and all
persons, entities, firms or corporations in active consort with them
(collectively referred to as the “PDS Releasees”) of and from all manner of
actions, proceedings, causes of action, suits, debts, dues, sums of money,
accounts, controversies, agreements, promises, damages, judgments, claims,
liens and demands whatsoever, whether arising in law or in equity, or arising
out of any federal, state or city constitution, statute, ordinance, by-laws or
regulation which any of the TEKBILT Releasors ever had, now have, or may have
against any of the PDS Releasees by reason of any act, omission, transaction or
occurrence from the beginning of the world to the date of this Agreement,
whether known or unknown including, without limitation, specifically any claims
arising out of the Parties’ Agreements and any claims that have been or could
be asserted in the Arbitration.


 


5.     Release
by PDS.  PDS makes this
release on behalf of itself and as applicable, its past, present and future
parent and subsidiary organizations, businesses, corporations, divisions,
affiliates, partners, joint venturers, stockholders, insurers, assigns,
officers, directors, trustees, agents, attorneys, employees, predecessors,
successors, representatives, heirs, and any other person, entity, firm or
corporation with whom they now or


 


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hereafter may be affiliated, and each of them and all persons,
entities, firms or corporations who now or hereafter may become entitled to
assert a claim derived from the PDS (hereinafter collectively referred to as
the “PDS Releasors”) against the TEKBILT Releasees as defined herein.  The PDS Releasors do hereby specifically,
knowingly and voluntarily RELEASE AND DISCHARGE AND COVENANT NOT TO SUE the
TEKBILT Parties and each of their respective past, present and future parent
and subsidiary organizations, businesses, corporations, divisions, affiliates,
partners, joint venturers, stockholders, insurers, assigns, officers,
directors, trustees, agents, attorneys, employees, predecessors, successors,
representatives, heirs, and any other person, entity, firm or corporation with
whom it is now or hereafter may be affiliated, and all persons, entities, firms
or corporations in active consort with them (collectively referred to as the
“TEKBILT Releasees”) of and from all manner of actions, proceedings, causes of
action, suits, debts, dues, sums of money, accounts, controversies, agreements,
promises, damages, judgments, claims, liens and demands whatsoever, whether
arising in law or in equity, or arising out of any federal, state or city
constitution, statute, ordinance, by-laws or regulation which any of the PDS
Releasors ever had, now have, or may have against any of the TEKBILT Releasees
by reason of any act, omission, transaction or occurrence from the beginning of
the world to the date of this Agreement, whether known or unknown including,
without limitation, specifically any claims arising out of the Parties’
Agreements and any claims that have been or could be asserted in any of the
Actions.


 


6.     Dismissal
of the Arbitration.  Upon
execution of this Settlement Agreement and delivery of the initial $200,000
installment of the settlement amount to Robert Nemeroff, Esq., TEKBILT shall
promptly deliver by telecopy to the American Arbitration Association and
counsel for PDS, Eckert Seamans Cherin & Mellott, LLC, a fully-executed


 


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Stipulation of Dismissal of Arbitration, stating that the Arbitration
is settled, discontinued and ended with prejudice.  Each party shall bear its own fees and costs.


 


7.     Entire
Agreement.  This
Settlement Agreement contains and constitutes the entire agreement and
understanding of the parties concerning the subject matter; it supersedes all
prior oral or written promises, representations, agreements, or understandings
of the parties with respect to its subject matter.  The terms and provisions of this Settlement Agreement may not be
modified except by a writing duly executed by all parties.


 


8.     Construction.  The language in this Settlement
Agreement shall be construed as a whole according to its fair meaning, strictly
neither for nor against any party, and without implying as presumption that its
terms shall be more strictly construed against one party by reason of the rule
of construction that a document is to be construed more strictly against the
person who drafted it.


 


9.     Severability.  The provisions of this Settlement
Agreement are severable and the invalidity or unenforceability of any provision
will not affect or impair the operation or effect of the remaining provisions
which remaining provisions will continue in full force and operation.


 


10.   Authority.  The persons executing this Settlement Agreement
warrant and represent that they are duly authorized to execute this Settlement
Agreement on behalf of the parties on whom they purport to act, and that their
respective representatives have read this Settlement Agreement in full and
understand its terms.


 


11.   Additional
Documentation.  The
parties shall execute any such other document as may be reasonably required to
settle the controversy between and among them as described in this Settlement
Agreement, to accomplish the performance required hereunder, and


 


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to effectuate marking as settled, discontinued and ended with prejudice
all litigation, arbitrations, judgments or pleadings, including without
limitation, the Arbitration.


 


12.   Confidentiality.  The terms of this Settlement Agreement
shall remain confidential, except to the extent required by the Securities and
Exchange Commission or gaming regulatory authorities or to the extent necessary
to obtain tax or legal advice.


 


13.   Representation
by Counsel.  The parties
acknowledge that at all times material they have been represented by counsel of
their own choosing or they had opportunity to be represented by counsel of
their own choosing concerning their rights affected by this Settlement
Agreement, the form and content of it and the advisability of executing
it.  This Settlement Agreement has been
reviewed by counsel for each of the parties hereto or each of the parties had
the opportunity to have their counsel review this Settlement Agreement and this
Settlement Agreement will not be strictly construed against either party.


 


14.   Counterparts.  This Settlement Agreement is binding when
one or more counterparts, individually or taken together, is executed by each
of the parties. This Settlement Agreement may be executed in any number of
counterparts.


 


15.   Governing
Law and Enforcement. 
This Settlement Agreement shall be governed by and construed in
accordance with Pennsylvania law, without giving affect to any conflict of law
provisions, and may be enforceable in the courts of competent jurisdiction in
Pennsylvania.  If any action at law or
in equity is necessary to enforce or interpret the terms of this Settlement
Agreement (“Enforcement Action”), the prevailing party shall be entitled to
reasonable attorneys’ fees, costs, and necessary disbursements in addition to
any other relief to which such party may be entitled.  If an Enforcement Action by TEKBILT becomes necessary,


 


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PDS hereby authorizes its counsel, Eckert Seamens Cherin & Mellott,
LLC to accept service of process on behalf of PDS by certified mail, return
receipt requested.


 


16.   Binding
Effect.  The terms and
provisions of this Settlement Agreement shall be binding upon, shall inure to
the benefit of, the parties hereto and their successors, assigns, heirs or
administrators. 


 


	
   

  	
  PDS
  GAMING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Johan P. Finley CEO

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Francine F. Griesing

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEKBILT,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ George Bruner

  	
   

  
	
   

  	
   

  
	
   

  	
  Attest:

  	
  /s/ Robert Nemeroff

  	
   

  
										



 


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